SOUTH Africa’s rand barely budged on Monday, reflecting caution seen across currencies around the world ahead of the U.S. presidential election.
At 1500 GMT the rand ZAR=D3 was 0.3% weaker at 16.2850 per dollar, having opened at 16.2575 and hovered around the level for most of the session with investors avoiding any major bets.
Democrat Joe Biden holds a national lead over President Donald Trump ahead of Tuesday’s poll, but Trump has stayed competitive in the swing states that could decide the White House race.
Locally, with last week’s budget speech disappointment in the rear view but ratings reviews still to come, economic data showing South Africa’s recovery remained tentative failed to move the currency in either direction.
The Absa Purchasing Managers’ Index (PMI) recovered further in October, recording its sixth straight month in expansionary territory, but businesses said they feared the impact on exports of the COVID-19 resurgence in Europe. New car sales for October showed another dip, albeit at a slower pace.
Stocks on the other hand rose, as shares globally recovered even amid new virus lockdowns thanks to strengthening factory data in China and Europe.
The Johannesburg Stock Exchange’s blue-chip Top-40 Index .JTOPI closed 1.94% higher at 48,393 points while the broader All-Share index was up 1.81% to 52,618 points.
The biggest winner of the day on the blue-chip index was drugmaker Aspen Pharmacare APNJ.J, which closed 11.45% higher following news it had reached a preliminary agreement with Johnson & Johnson JNJ.N to commercially manufacture the U.S. drugmaker’s COVID-19 vaccine candidate.
(SOURCE: REUTERS)
